Stocks expected in the green, supported by hopes of a vaccine and a stimulus package in the United States 
 
 
 
 
 
 
Eurostoxx 50 3,337.77 points +1.84% 
CAC 40 5,031.74 points +1.90% 
DAX 30 13,243.43 points +2.07% 
FTSE 100 5,940.95 points +1.35% 
SMI 10,384.84 points +1.92% 
AEX 561.27 points +1.64% 
BEL 20 3,358.68 points +1.34% 
IBEX 35 6,996.90 points +0.57% 
 
DJIA 29,100.50 points +1.59% 
Nasdaq 12,056.44 points +0.98% 
S&P 500 3,580.84 points +1.54% 
 
Nikkei 225 23,484.19 points +1.02% (price at 7:25 a.m.) 
 
Exchange rate at 07:30 
Change from the close in New York 
 
EUR/USD 1.1805 -0.44% 
EUR/JPY 125.47 -0.34% 
USD/JPY 106.28 +0.10%

TO FOLLOW IN FRANCE

The government presents its economic recovery plan on Wednesday, which aims to respond to the crisis caused by the coronavirus pandemic.

Investors will also be watching for the final services PMI figures in August. Preliminary data, published on August 21 by IHS Markit, showed an index at 51.9 in August, against 57.3 in July.

On the corporate side, Capgemini and Iliad publish their half-year results.

SHARES

European equity markets are expected to continue rising on Thursday, buoyed by hopes of further stimulus and treatment for Covid-19.

At 7:40 a.m., the CAC 40 futures contract gained 34 points, or 0.7%, according to data from broker IG Markets. The contract on the DAX 30 took 96 points, or 0.7% also, and that on the FTSE 100 won 23 points, or 0.4%.

In Asia, the main markets present a mixed picture. The Nikkei index of the Tokyo Stock Exchange rose 1.1% at the end of the session, while the Hang Seng yielded 0.4% in Hong Kong. In China, the Shanghai Composite index lost 0.1%.

On Wednesday, Wall Street continued its ascent, allowing the Nasdaq and the S&P 500 to sign new records and the Dow Jones index to cross the 29,000 point closing mark. The Dow Jones Index (DJIA) ended up 1.6% to 29,100 points. The broader S&P 500 index gained 1.5% to end at a new high of 3,580 points. The technology-dominated Nasdaq gained 1% to 12,056 points, a new record.

Indicators published on Wednesday confirmed the recovery of economic activity in the United States, but at a slow pace.

In its book Beige, published in the evening, the Federal Reserve (Fed) pointed out that the economy had generally improved in the United States in recent weeks, but in a modest way. "The continued uncertainty and volatility related to the pandemic, and its negative impact on consumers and business activities, is a topic that resonates across the country," the Fed said.

In this context, investors hope that the Trump administration will propose a new plan to support the economy. Treasury Secretary Steven Mnuchin on Tuesday urged Congress to allocate more funds to combat the effects of the coronavirus pandemic and said he was ready to return to the negotiating table with Democratic leaders.

"It feels like the market is going higher and higher every day, regardless of the news," said Charles Day, wealth management adviser at UBS.

"It's a mechanism supporting the market, the assumption that there's going to be further fiscal stimulus," said Seema Shah, chief strategist at Principal Global Investors. "If it doesn't happen, investors would reassess the growth outlook for the US economy. This would cause a pause in the bullish rally, or even a slump," she adds.

On Thursday, investors' attention will be on the PMI indices for the euro zone and its member states, as well as weekly jobless claims and the US trade balance.

OBLIGATIONS

Yields on long-term U.S. Treasury bonds fell on Wednesday as investors worried about the fragility of the U.S. economic recovery and expected the Fed to keep interest rates low for a while. extended period.

The yield on the ten-year Treasury bill, the market benchmark, fell 2.2 basis points, to 0.650%, while that of the two-year bond rose by 0.4 basis points, at 0.135%. The yield on the 30-year title lost 5 basis points to 1.375%.

“Since Jackson Hole, there has been an even more impressive and dovish shift in Fed policy,” said Thomas Simons, money market economist at Jefferies. "Vice President Clarida, Governor Brainard and Cleveland Fed President Mester all described the recovery as 'fragile'. The Beige Book seems to say so too," he said.

CHANGES

The dollar rose Thursday morning against major currencies, including the euro.

Hope for a Covid-19 vaccine is fueling risk appetite. The Trump administration is asking states to expedite licensing of vaccine distribution sites by November 1, a sign the government wants a vaccine on the market before the end of the year.

“If a vaccine is quickly developed and distributed, the global and American economic prospects will be improved, which will weigh on the dollar”, indicates the bank CBA.

For its part, Danske Bank has revised upwards its forecast for the euro-dollar pair for the next 12 months, due to the change in the Fed's inflation target. Danish Bank estimates that the euro will reach $1.21 in one month and $1.23 in three months. This last level should be maintained over a six-month horizon, before the single currency declines to $1.18 in a year. Previously, the bank anticipated the euro at 1.16 dollars in one to three months and at 1.12 dollars in six to 12 months.

OIL

Oil prices are down slightly on Thursday morning and Axicorp is warning that market catalysts could start to run out.

A sharp decline in gasoline demand in the United States in September is possible, as the peak travel season draws to a close, notes the broker. Axicorp also points out that the market fears a rise in supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia. The Russian Energy Minister has proposed that OPEC+ react to the rebound in oil demand.

At 7:30 a.m., the November contract on Brent North Sea crude lost 17 cents, at 44.26 dollars a barrel, while that of October on light sweet crude oil (WTI) quoted on the Nymex yielded 9 cents, at 41, $42 a barrel.